Women "Almost 30K Behind Men" in Pension Savings
The gap between the pensions savings of men and women has hit a record high, with females feeling significantly worse off than they did last year.
Research from Scottish Widows revealed that women are saving an average of £776 per year less than men do for retirement.
Last year this figure stood at £700.
This means that if a 30-year-old woman kept up with this annual rate of saving, she will end up £29,800 worse off in today's money compared to a man, if she retired at the age of 65.
The number of women who are putting away no money for retirement has also risen since last year.
More than a quarter of women are now failing to put away any money for old age, in comparison to the 23 per cent of females who did not manage to save anything last year.
In effect, this means that a 30-year-old female who keeps up with this average annual saving rate will experience a shortfall of £29,800 upon retiring at the age of 65, compared to her male counterpart.
In comparison, just under a fifth of men are not saving anything for retirement.
The report also found the gender gap in retirement savings has increased by over 10 per cent in 12 months.
The main reason for a lack of retirement saving seemed to be that money was being directed elsewhere.
A third of women are prioritising debt repayments over saving for their retirement, it was found.
Debts, excluding mortgages, have jumped from £10,174 last year to £10,922 this year, while retirement savings among women have dropped drastically.
The average monthly pension saving for women has fallen from £95 per month to £130 per month.
Lynn Graves, head of business development, Corporate Pensions at Scottish Widows said: "Important differences in lifestyle such as being more likely to work part-time or have a full-time caring role, mean women often find it more difficult to save for the long term and retirement.
" "It has therefore never been more important for the pensions industry, Government and employers to raise awareness of this gender gap in retirement savings and help women prioritise their pensions.
" "Although there is a clear need to balance everyday living costs with unexpected expenditure shocks, this can't be at the expense of women protecting themselves in old age.
"The recession has had a major impact on people's attitudes to managing their finances, as the messages to 'live within your means' has been hammered home.
To see more on this article and many more articles please see http://www.
staysure.
co.
uk/news
Research from Scottish Widows revealed that women are saving an average of £776 per year less than men do for retirement.
Last year this figure stood at £700.
This means that if a 30-year-old woman kept up with this annual rate of saving, she will end up £29,800 worse off in today's money compared to a man, if she retired at the age of 65.
The number of women who are putting away no money for retirement has also risen since last year.
More than a quarter of women are now failing to put away any money for old age, in comparison to the 23 per cent of females who did not manage to save anything last year.
In effect, this means that a 30-year-old female who keeps up with this average annual saving rate will experience a shortfall of £29,800 upon retiring at the age of 65, compared to her male counterpart.
In comparison, just under a fifth of men are not saving anything for retirement.
The report also found the gender gap in retirement savings has increased by over 10 per cent in 12 months.
The main reason for a lack of retirement saving seemed to be that money was being directed elsewhere.
A third of women are prioritising debt repayments over saving for their retirement, it was found.
Debts, excluding mortgages, have jumped from £10,174 last year to £10,922 this year, while retirement savings among women have dropped drastically.
The average monthly pension saving for women has fallen from £95 per month to £130 per month.
Lynn Graves, head of business development, Corporate Pensions at Scottish Widows said: "Important differences in lifestyle such as being more likely to work part-time or have a full-time caring role, mean women often find it more difficult to save for the long term and retirement.
" "It has therefore never been more important for the pensions industry, Government and employers to raise awareness of this gender gap in retirement savings and help women prioritise their pensions.
" "Although there is a clear need to balance everyday living costs with unexpected expenditure shocks, this can't be at the expense of women protecting themselves in old age.
"The recession has had a major impact on people's attitudes to managing their finances, as the messages to 'live within your means' has been hammered home.
To see more on this article and many more articles please see http://www.
staysure.
co.
uk/news
Source...